Halfords Group (LON:HFD) Shareholders Have Enjoyed An Impressive 153% Share Price Gain
When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Halfords Group plc (LON:HFD) share price has soared 153% in the last year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 30% over the last quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. The longer term returns have not been as good, with the stock price only 26% higher than it was three years ago.
Check out our latest analysis for Halfords Group
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the last year Halfords Group grew its earnings per share (EPS) by 0.07%. The share price gain of 153% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.
A Different Perspective
It's nice to see that Halfords Group shareholders have received a total shareholder return of 153% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 7% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Halfords Group better, we need to consider many other factors. For example, we've discovered 1 warning sign for Halfords Group that you should be aware of before investing here.
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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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